Environmental, social, and governance research dynamics in the wake of the U.S. Securities and Exchange Commission proposal: A systematic literature review

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Abstract

The U.S. Securities and Exchange Commission (SEC) proposed a new rule requiring registrants to disclose climate-related information in their registration statements and annual reports in 2022 (U.S. Securities and Exchange Commission [SEC], 2022). This institutional initiative has prompted an increasing number of U.S. firms to address environmental, social, and governance (ESG) issues in their filings. Our systematic literature review examines the evolving research trends regarding ESG practices in the U.S. Specifically, we compare ESG studies conducted before and after the SEC’s proposal to identify emerging trends. We find that recent topics in ESG research are more diversified compared to the studies published before the SEC proposal. This research provides a comprehensive understanding of the evolving landscape of ESG research in the U.S. and addresses the growing interest in ESG research. Importantly, our findings shed light on directions and implications for future ESG research in business. Finally, as ESG research continues to emerge after the proposal, we provide thoughtful insights for researchers, regulators, policymakers, and practitioners.

Keywords: ESG, Climate Disclosure, ESG Performance, Sustainable Development, Climate Action, SEC Proposal

Authors’ individual contribution: Conceptualization — M.G. and N.O.; Methodology — M.G. and N.O.; Writing — M.G. and N.O.; Investigation — M.G. and N.O.; Funding — M.G. and N.O.; Resources — M.G. and N.O.; Supervision — M.G. and N.O.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, M4, M14, M41, M48

Received: 01.07.2024
Accepted: 12.12.2024
Published online: 17.12.2024

How to cite this paper: Guo, M., & Oh, N. (2024). Environmental, social, and governance research dynamics in the wake of the U.S. Securities and Exchange Commission proposal: A systematic literature review. Corporate Governance and Sustainability Review, 8(4), 8–21. https://doi.org/10.22495/cgsrv8i4p1